Energy network companies refute profit claims

The Informer
Posted on: 12/09/2017

The Energy Networks Association (ENA) has responded to claims by a think tank that they are making excessive profits.

The Energy and Climate Change Intelligence Unit (ECIU) said the six companies that transport electricity to Britain’s homes and businesses made annual average profit margins of 32% over the last six years.

This equates to about £10bn on the nation’s collective energy bill over six years (2010-15), or around £27 per home per year.

However, the ENA said that since the start of the current price control period in 2015 (RIIO-ED1) costs have fallen by an average £8.50 per household per year, whilst companies will invest £25 billion in the network that delivers electricity into homes and businesses now and well into the future.

“Ths investment is driving improved performance, with the UK benefitting from one of the most reliable networks in the world. Ofgem’s report on the period 2010-2015 calculated the average return of DNOs to be 12% and since 2015 the companies earn returns of around 9% on average, a sizeable part of which is reliant on companies achieving efficiency savings shared with consumers,” it said.